People are buying less beer, and that is shrinking the production of Oregon hops.
The state’s hop harvest is down about 30% over the last two years.
Michelle Palacios with the Oregon Hop Commission told OPB’s “Think Out Loud” that the industry has had downturns in the past.
“Hops are like any other ag commodity. It is cyclical. It follows a market. I think what’s different this time around is that the adjustment is because of a change in beer demand, which has not been the case before.”
Palacios says the dip in demand could signal a long-term trend that farmers need to account for.
Research shows primarily younger Americans shifting away from beer or alcohol altogether.
Palacios says many hop farmers also produce other Oregon staples like hazelnuts and grass seed.